Classover Holdings enters May with shorts piling in, a $200M shelf filing adding to the pressure, and a borrow market running at levels rarely seen outside full-scale squeezes.
The lending picture here is the story. Short interest has exploded — up 210% over the week and more than 650% over the past month — climbing from roughly 8% of the free float in mid-April to almost 26% by April 30. That is not a slow institutional build. It is an aggressive, compressed accumulation into a micro-cap stock with a free float of just over one million shares. Borrow costs have moved in lockstep: cost to borrow hit 554% annualised on April 30, up 32% from the week prior and more than fivefold since late March when it ran near 100%. Availability is tight — the lending pool has been under meaningful strain for most of April, with borrow utilisation peaking at 92% at the start of the month before easing to the low 80s this week. That still leaves little headroom for new shorts to establish positions without pushing costs even higher.
The catalyst for this week's acceleration is visible in the news flow. On May 1, Classover filed a prospectus for a $200M mixed shelf offering — a large number relative to a company with a market cap sitting well below $2M. That kind of dilutive overhang on a micro-cap is precisely what draws short sellers in: the mechanics of shelf filings, potential future equity issuance, and near-term price pressure created by the announcement all feed into the same trade. A partnership with Marbella on AI education, announced the same day, offered a counterweight narrative, but the market's verdict so far has been unambiguous — the stock fell nearly 11% on the week and is down more than 72% over the past month.
Options positioning does not tell a clear directional story here. The put/call ratio is running near 0.98 on the most recent reading, well below its 20-day average of approximately 2.0, and far below the 52-week high of 5.6. That sounds bullish on the surface, but the PCR has whipsawed violently across the history — ranging from near zero to above 4.5 within a single week — suggesting thin, erratic options activity rather than a genuine positioning shift. The short score of 80.7 out of 100 ranks this as one of the more heavily shorted stocks in the ORTEX universe on a composite basis. The RSI sits near 29, deep in oversold territory by technical measures.
The ownership base offers limited institutional buffer. BlackRock added roughly 87,000 shares in the quarter ending March 31 — a notable move for a fund of that size in a stock this small, though the absolute position remains tiny. Top holders are dominated by insiders and early backers, with Hui Luo at 10% and Ling Shi at 4.5% per the most recent filings. No analyst coverage is visible in the data; there are no price targets or consensus ratings to frame the fundamental debate.
Prior earnings prints have been rough. The December 2025 release saw the stock fall 17.6% the following day and 24.9% over the subsequent five sessions. An April 1, 2026 announcement produced a one-day gain of 9.4% that faded almost entirely by the end of the week. A FY 2025 results announcement is flagged as pending — how the market reacts to that print, set against this level of short positioning and an open shelf, is the number to watch next.
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